10 Eye-opening Employee Retention Statistics You Should Take Note Of
New companies and new opportunities are coming up every day. With so much to choose from, employees don’t think twice before switching their job if their current one doesn’t suit them.
To keep up with the changing times and changing needs, employers need to be mindful of how they manage their company culture.
What better than looking at some solid numbers before you plan your employee retention strategy!
1) Employees who undergo an effective onboarding process can reduce new hire retention by 82%. (Source)
The onboarding program is the first official interaction a new hire has with the company. So setting a good first impression can go a long way in building employee-management relationships.
An effective onboarding program is a lot more than letting your employees know about the company benefits, its history and culture. Modern orientation and onboarding processes focus on outlining the goals and objectives, expectations and skills an employee must possess. Setting the objectives early on enables employees to get clarity on what is expected and how they can achieve the set goals.
2) Companies that provide the option for remote work have 25% lower employee turnover. (Source)
When the pandemic hit the world, remote jobs have increased more than ever. Most of the people looking for a new job consider work flexibility as a make or breakpoint.
In fact, a survey shows that 1 out of 3 workers will seek a new job if asked to return to offices for full-time. Employees Hybrid workplaces and staggered work shifts are on the rise.
3) 79% of employees wouldn’t accept a job at a company with a higher salary unless the company failed to take actions against employees involved in unethical behaviour. (Source)
Last year saw a rise in cases of sexual harassment faced by women in their workplaces (corporates, media, entertainment). It gave rise to the #Metoo movement where women started sharing their stories. In India, there was a 54% rise in reports of sexual harassment cases.
The above survey by Manifest shows that employees are becoming more mindful of their colleagues and their working environments. Companies, too, must strive towards making workplaces safe and actually practice their work ethics. They need to be unbiased towards their treatment towards employees (that goes for both the accused and the victim).
4) 77% of companies focus on employee experience to increase retention. (Source)
Employee engagement is different from employee experience. Employee engagement is an approach to drive results and keep employees motivated. Employee experience is what you do for them and how you make them feel. 96% of employees say that employee experience is an essential part of their work-life.
5) Employees whose managers consistently acknowledge them for good work can reduce turnover up to 31%. (Source)
Employee recognition is fundamental to an organisation’s retention efforts.
Imagine you have been assigned a project that you’ve been working on for the last 1 month. You finish it successfully and the client loves it. But your boss doesn’t even acknowledge your efforts or recognise the good work you’ve done. How does that make you feel?
Disappointed and dejected right? Now shift this to you being the above-mentioned kind of boss and the praise you didn’t give to a deserving employee. Do you still think your employee will want to work under such a manager? I wouldn’t.
Acknowledging and appreciating someone doesn’t mean you’re picking favourites or being biased. It’s just showing your employees that you take notice of their efforts and their hard work is contributing to the company’s bottom line. Such employees, who are recognised will always be motivated to work hard and achieve goals. This is so because they will remember the feeling of satisfaction they felt when the management appreciated them.
6) 35% of workers say they'll quit if they don't get a raise.(Source)
A survey conducted on 900 employees showed that 35% will quit their jobs if they don’t get a raise. Employees under the age of 35 are most likely to walk away for better job opportunities. They feel they are underpaid.
Some are not satisfied with the company’s benefits policy. A lot of them said another cause of dissatisfaction was the limited career growth.
Have a one-on-one meetings, conduct surveys and have a competitive compensation and benefit system.
7) The average employee exit costs 16% to 213% of their annual salary depending on their pay. (Source)
Hiring an employee takes time, resources and money. Similarly, when an employee leaves, it costs the employer 16% to 213% of that employee’s salary to get him/her replaced.
The same report also highlights the indirect costs of employee turnover. These indirect costs are in the form of productivity loss. When an employee leaves, she takes with herself her knowledge, skills and experience. This causes a gap between the work that needs to be done and the lack of available skills to do that work. Even after a new replacement is hired, it takes time and training for that employee to fully contribute.
The only way to stop this from happening is by conducting regular 1:1 meetings with your employees to understand their needs and concerns.
8) Human resource leaders admit employee burnout is sabotaging workforce retention and is responsible for 50% of the turnover. (Source)
We repeatedly say that employees are an organisation’s biggest asset. They drive your business towards loyal customers and generate revenue for your business. Therefore, as hr leaders, their well-being should be your top priority.
Too much overtime and overwork are sapping the life out of your employees. Moreover, with the new generation being so adamant about work-life balance, organisations must bring new changes to their organisation.
Mollie Lombardi, CEO of Aptitude Research has said, “While not all burnout can be eliminated, much of it can be avoided using critical strategies that balance consistency and personalization of schedules and workload; leverage managers as models for how their team can achieve work/life balance; and implement tools and technology that proactively manage burnout or otherwise support these efforts.”
9) 8 in 10 employees would seek a new job after 1 bad day. (Source)
Retaining top talent is becoming difficult and very competitive. In fact, the same survey also found that 81% of job seekers cited dissatisfaction with the work environment as the major reason they started to look elsewhere for work.
More than half of the respondents say they feel underpaid. Some are not satisfied with the company’s benefits policy. A lot of them said another cause of dissatisfaction was the limited career growth.
Some other reasons for dissatisfaction which managers need to look out for are hostile work culture, unsupportive boss, lack of meaningful work, work and life balance.
Especially for millennial and Gen Z employees, if they don’t get the job satisfaction from their work, there’s no way they’re going to be associated with that field/company.
10) 70% of staff members would be at least somewhat likely to leave their current organizations and take a job with one that is known for investing in employee development and learning. (Source)
In the survey, career development was ranked the 2nd most important need after compensation that made employees want to stay.
Employee development is crucial to managing an organisation’s turnover rate. In order to excel and become experts in a field, employees need to gain knowledge and experience. That is only possible when they advance in their career, work with new teams and learn new skills.
On the other hand, if employees feel their growth and exposure has become stagnant in a company, they’ll definitely start looking for other opportunities.
All of these statistics point towards the transition that workplaces are going through and what future businesses need to do to retain their top talent.